Dell Federal Systems, L.P. v. United States, No. 17-2516 (Fed. Cir. 2018)Annotate this Case
After the Army awarded a contract for computer hardware to Appellees, including Dell, Blue Tech, and Red River, 21 unsuccessful bidders filed protests, claiming the Army’s evaluations were unreasonable because the proposal deficiencies the Army considered disqualifying were minor or “clerical errors and misunderstandings” resulting from Solicitation ambiguities that could have been resolved through clarifications. The Army instituted a corrective action to reopen procurement and conduct additional discussions with offerors. Appellees challenged the decision. The Court of Federal Claims granted Appellees judgment on the administrative record and enjoined the Army from proceeding with its corrective action. The Federal Circuit reversed. The Claims Court did not apply the proper legal standard and the Army’s corrective action was reasonable under the correct standard. The Claims Court applied a “more exacting [standard] than the APA’s ‘rational basis’ review threshold for procurement protests, and impermissibly restrict[ed] the great deference the Tucker Act requires courts to afford agency procurement officials” by its use of a “narrowly targeted” standard. The Army’s proposed corrective action to reopen procurement and allow proposals to be revised is rationally related to the procurement’s defects, i.e., failure to conduct discussions and spreadsheet ambiguities.